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Ahead of its monthly close, Bitcoin (BTC) saw another unsuccessful attempt to retake the $72,000 resistance as a support level. Despite the decline, some analysts think that the cryptocurrency is still in a strong position for the coming exit, setting the next levels to watch.
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BTC’s Sweet 16 Party Turns Spooky
Bitcoin, the largest cryptocurrency by market capitalization, recorded an impressive rally in ‘Uptober,’ rising nearly 13% in the past 30 days. BTC price jumped from a monthly low of $58,900 to near its all-time high (ATH) of $73,737, hitting the $73,300 mark on Wednesday.
After a green September close, the main crypto will have its best monthly close since March, likely registering around 13 $ to 14% in monthly returns despite its recent price action.
On its 16th birthday, Bitcoin recorded a terrifying 2% drop, pushing the entire market into the red Halloween party. The price of BTC fell below the 71,000 mark, reaching an intraday low of $70,600. Meanwhile, the second-largest cryptocurrency by market capitalization, Ethereum (ETH), retreated nearly 5.1%, losing the $2,600 support zone.
Crypto analyst Ali Martinez indicated that today’s decline is the fifth in a row for BTC to be rejected at $72,000. Since its ATH, Bitcoin has declined to this level five times, falling between 8.2% and 18% the previous four times.
Analyst Altcoin Sherpa suggested that BTC could see a 4% to 5% dip if the largest cryptocurrency does not hold the $70,000 support zone. Nevertheless, Sherpa considers that the cryptocurrency should “see some kind of bounce” from the $70,800-$71,400 area in the short term.
BTC is expected to have a very volatile week ahead of the US presidential election. Bitfinex analysts predict that Bitcoin volatility will increase between November 6 and November 8, as speculation and expectations about the outcome of the election affect the performance of the cryptocurrency.
Is Bitcoin preparing for a year-end exit?
Cryptoinsightuk weighed in on Bitcoin’s performance, noting that BTC is still at ATH with Open Interest (OI). A crypto investor is looking at whether the Daily Relative Strength Index (RSI) could be “bearish” today.
He also highlighted that $69,600 should serve as the main support level for Bitcoin bulls but warned that losing the $66,500 range could be “dirty” as BTC’s open interest will “celebrate.”
Meanwhile, Crypto Kaleo posted the best view of BTC price action. The analyst emphasized that the crypto-flagship crypto did not break its ATH while repeating the $20,000 mark in 2020.
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Instead, Bitcoin initially retreated nearly 20% during Thanksgiving, from $19,400 to $16,100. Moreover, the price of BTC rallied within that range for 30 days before the breakout, seeing the next leg up in late December 2020.
The analyst pointed out that this outbreak occurred 219 days after May 2020’s Halving. Since Bitcoin is currently 194 days after the decline, the analyst considers that “a small pullback here is not a reason for concern.”
As of this writing, Bitcoin has held the support level of $70,000, currently trading at $70,522.
Featured image from Unsplash.com, Chart from TradingView.com